[mcantelon]

>Does that mean that we should throw the CEO of McDonald's in jail too because he knowingly sells junk food to customers? ... If these securities had worked out well, GS would be considered geniuses

The thing is, the securities were designed to fail so they could short them. That would be like McDonald's deliberately selling lethal food and taking life insurance out on its customers.

Society bears the costs of fallout from commerce that is damaging to society. The fraud of Goldman Sachs, and other companies engaged in, resulted in the bailouts. If a business model is dependent on incurring significant social costs then a society which allows it won't be sustainable.